A new report by the advocacy group Environmental Defence sheds light on the ongoing financial support provided by the federal government to the fossil fuel industry, despite recent measures aimed at limiting certain types of subsidies. Published by Benjamin Shingler for CBC News, the report highlights that Ottawa offered at least $18.6 billion in support to the fossil fuel and petrochemical sectors in 2023.
Key findings from the report include:
- $8 billion in loan guarantees for the Trans Mountain pipeline.
- $7.4 billion in public financing through Export Development Canada.
- $1.3 billion allocated for carbon capture and storage projects.
Although Environment Minister Steven Guilbeault announced measures to eliminate “inefficient” fossil fuel subsidies in July, Environmental Defence’s analysis indicates only a slight decrease in financial support compared to previous years.
The report underscores concerns from climate activists regarding Canada’s commitment to transitioning towards cleaner, renewable energy sources. Despite government assurances of phasing out inefficient subsidies, the report reveals ongoing financial backing for the fossil fuel industry, giving it an advantage over alternative energy alternatives.
While the federal government emphasizes the importance of carbon capture projects in reducing emissions, critics argue that such investments divert resources from more effective climate solutions.
Looking ahead, the federal government plans to unveil a strategy to phase out domestic public financing for the fossil fuel sector, with details expected this fall. However, Environmental Defence advocates for additional measures, such as taxing windfall profits of the oil and gas industry, to address climate and affordability needs.
The report’s findings add to the ongoing debate surrounding fossil fuel subsidies and their impact on climate policies and the transition to sustainable energy.